Entrepreneurship Under Severe Adverse Conditions: The Northwest Mexican Case

Review of Business & Finance Case Studies, Vol. 2, No. 1, pp. 89-101, 2011

13 Pages Posted: 5 Jan 2012

See all articles by José Gabriel Aguilar Barceló

José Gabriel Aguilar Barceló

Universidad Autónoma de Baja California (UABC)

Alejandro Mungaray Lagarda

Universidad Autónoma de Baja California (UABC)

Martin Ramirez-Urquidy

Universidad Autónoma de Baja California (UABC)

Natanael Ramírez Angulo

Universidad Autónoma de Baja California (UABC)

Date Written: 2011

Abstract

We analyzed the performance of marginalized subsistence microenterprises, through dichotomous logistic regressions by maximum likelihood. We tested 52,224 hypotheses, trying to find behavior patterns on microenterprises. The results show that performance is the result of a combination of factors related to the owners and the decisions made by them on their entrepreneurial environment, if measured as an approximation of the success/failure ratio. It is possible to know many of these variables before the business starts. In addition, some variables did not show the expected relation; this suggests that these projects deserve a different treatment than the formal micro and small enterprise. These factors may well influence the design of microenterprises’ assistance programs, micro loans and the establishment of commercial areas that allow an "enhanced" micro entrepreneur profile.

Keywords: Small business, marginalization, performance, logit, maximum likelihood

JEL Classification: C35, D12, D13, D14

Suggested Citation

Aguilar Barceló, José Gabriel and Mungaray Lagarda, Alejandro and Ramirez-Urquidy, Martin and Ramírez Angulo, Natanael, Entrepreneurship Under Severe Adverse Conditions: The Northwest Mexican Case (2011). Review of Business & Finance Case Studies, Vol. 2, No. 1, pp. 89-101, 2011, Available at SSRN: https://ssrn.com/abstract=1950412

José Gabriel Aguilar Barceló (Contact Author)

Universidad Autónoma de Baja California (UABC) ( email )

Calzada Tecnológico No. 14418
Tijuana, Baja California 22390
Mexico

Alejandro Mungaray Lagarda

Universidad Autónoma de Baja California (UABC) ( email )

Calzada Tecnológico No. 14418
Tijuana, Baja California 22390
Mexico

Martin Ramirez-Urquidy

Universidad Autónoma de Baja California (UABC) ( email )

Calzada Tecnológico No. 14418
Tijuana, Baja California 22390
Mexico

Natanael Ramírez Angulo

Universidad Autónoma de Baja California (UABC) ( email )

Calzada Tecnológico No. 14418
Tijuana, Baja California 22390
Mexico

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